U.S. Stocks Spike Again as Dow Rises More than 200

Stocks extend record-setting rally as earnings season under way.

U.S. stocks spiked again on Friday, with the Dow Jones Industrial Average (NYSEARCA:DIA) posting its second straight triple-digit increase at the start of earnings season.

The blue-chip index spiked 228.46 points, or 0.9%, to settle at 25,803.19. The Dow 30 also rose more tan 200 points on Thursday.

The broader S&P 500 Index (NYSEARCA:SPY) advanced 0.7% to 2,786.24, with eight of 11 sectors contributing to the rally. Gains on Friday were once again led by consumer discretionary, energy and industrials stocks. These sectors added at least 0.9% apiece.

Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) climbed 0.7% to close at 7,261.06.

All three major indexes booked record highs in the final session of the week, and have now added at least 4% since the start of January.

Implied volatility (NYSEARCA:VXX) rose again on Friday, defying a general trend that sees the CBOE VIX trade in the opposite direction of stocks. The VIX closed up 2.8% at 10.16. Despite the increase, volatility remains extremely low when measured historically.

In economic data, U.S. underlying inflation rose in December to the highest level in 11 months, pointing to firm domestic demand. The core consumer price index (CPI) rose 0.3% last month and 1.8% annually, the Department of Labor reported.

The Final Word: Corporate earnings season was off to a positive start, with JPMorgan Chase & Co reporting profit that beat estimates. Wall Street’s big banks are benefiting from higher interest rates and loan growth, a trend that is expected to continue for the foreseeable future.

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